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Case Study 6A-1

Case Study 6A-1

Q In 2017, Amazon announced its intention to build its second headquarters somewhere in North America. Amazon expected to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs—it will be a full equal to the current campus in Seattle. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 (second headquarters) is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community. Amazon estimates its investments in Seattle from 2010 to 2016 resulted in an additional $38 billion to the city’s economy—every dollar invested by Amazon in Seattle generated an additional $1.40 for the city’s economy overall. Amazon prepared a request for proposal (RFP) that outlined the selection process for the chosen city. Within the RFP, they said that in choosing the location for HQ2, Amazon has a preference for: • Metropolitan areas with more than one million people • A stable and business-friendly environment • Urban or suburban locations with the potential to attract and retain strong technical talent • Communities that think big and creatively when considering locations and real estate options HQ2 could be, but does not have to be: • An urban or downtown campus • A similar layout to Amazon’s Seattle campus • A development-prepped site. • We want to encourage states/provinces and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline. Amazon also spelled out the following KEY PREFERENCES AND DECISION DRIVERS (not in a ranking order): Site/building—As described herein, finding suitable buildings/sites is of paramount importance. Amazon HQ2 is a transformational project, and we must ensure we have the best real estate options available whether this be a redevelopment opportunity, a partnership with the state, province, local government, or new buildings. All options are under consideration. Capital and operating costs—A stable and business-friendly environment and tax structure will be high-priority considerations for the project. Incentives offered by the state/province and local communities to offset initial capital outlay and ongoing operational costs will be significant factors in the decision-making process. Incentives—Identify incentive programs available for the project at the state/province and local levels. Outline the type of incentive (i.e., land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount. The initial cost and ongoing cost of doing business are critical decision drivers. Labor force—The project includes significant employment requirements at the threshold compensation levels described herein and with corresponding educational attainment of the available workforce. The project must be sufficiently close to a significant population center, such that it can fill the 50,000 estimated jobs that will be required over multiple years. A highly educated labor pool is critical and a strong university system is required. Logistics—Personnel travel and logistics needs, both from population centers to the project site, as well as between company facilities, are critically important. As such, travel time to a major highway corridor and arterial roadway capacity potential are key factors. The highway corridors must provide direct access to significant population centers with eligible employment pools. Travel time to an international airport with daily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, DC, is also an important consideration. Time to operations—The project requires an expeditious timetable for the location decision and the commencement of construction. Given this, sites with the requisite access, utility infrastructure, and zoning are critical. Please outline the permitting process and estimated timetable to initiate Phase I of our operations. Cultural community fit—The project requires a compatible cultural and community environment for its long-term success. This includes the presence and support of a diverse population, excellent institutions of higher education, local government structure, and elected officials eager and willing to work with the company, among other attributes. A stable and consistent business climate is important to Amazon. Please demonstrate characteristics of this in your response. We encourage testimonials from other large companies. Community/quality of life—The project requires a significant number of employees. We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life. Tell us what is unique about your community. The process took over a year to complete. Over 100 cities responded to the RFP and the list was then further narrowed down to 20 finalist candidates. Ultimately in December of 2018, Amazon announced that two cities would become the future home of its second headquarters site. The massive expansion worth over $5 Billion in investment and 50,000 jobs were awarded to Crystal City in Northern Virginia and Long Island City in Queens, New York. In winning, these cities offered massive tax breaks and promises to build public infrastructure. Not everyone is happy with this decision and there will certainly be winners and losers, but it will be interesting to see how this plays out over the next few years. Q1: Why do you think Amazon selected this city out of 100 plus candidates? Q2: What other factors do you think Amazon should have or could have considered? Q3: NKU (my university) is located in the greater Cincinnati area. What could be some of the reasons that Cincinnati was not chosen as a finalist city by Amazon? Rubric Case Study Rubric Case Study Rubric Criteria Ratings Pts This criterion is linked to a Learning OutcomeApplication of Chapter Concepts to Case Study Example 10 to >7.0 pts Excellent Supports CS diagnosis and opinions with strong relevant arguments and well documented evidence; presents a balanced and holistic critical view; interpretation is both reasonable and objective. CS response shows evidence of knowledge and understanding of assigned reading and interactive exercises. Provides quality and quantity of relevant concepts applied to the specifics of the CS. Includes analytics, research, observation, ideas and recommendations, potential solutions and sensitivity analysis. Goes beyond the basic answers to the prompts and demonstrates thoroughness of responses by incorporating numerous chapter concepts. 7 to >5.0 pts Average Supports diagnosis, suggestions and opinions with limited reasoning and evidence; presents a somewhat one-sided or incomplete argument; demonstrates modest engagement of chapter concepts to the ideas presented. Makes appropriate but somewhat vague connections between identified issues/problems and concepts studied in readings, interactive exercises and/or lectures; demonstrates some command of the analytical tools studied; supplements case study with limited research. Answers to the prompts are basic and routine. 5 to >0 pts Poor CS response is light in content with little or no action suggested and/or inappropriate solutions proposed to the issues in the case study. Lacks suitable connection between the issues identified and the concepts studied in the readings and interactive elements; supplements case study, if at all, with incomplete research, documentation and citation of resources. Does not adequately answer all the CS prompts. 10 pts This criterion is linked to a Learning OutcomeContent - Relevance, analytical thought and expression of ideas/points 5 to >3.0 pts Excellent Identifies and demonstrates a sophisticated understanding of the main issues/problems/opportunities in the case study. Presents an insightful and thorough analysis of all identified issues/problems; includes all necessary supporting materials and/or calculations. 3 to >2.0 pts Sufficiently Average Identifies and demonstrates an average understanding of most of the issues/problems/opportunities. Presents a moderate analysis of most of the issues identified within the CS; May lack appropriate elaboration to express ideas/points. May be missing some support materials and/or necessary calculations. 2 to >0 pts Poor Identifies and demonstrates at or below minimum acceptable understanding of the issues/problems/opportunities within the CS. Lacks analytical fortitude, or responses are irrelevant Presents a superficial or incomplete analysis of the identified issues; omits supporting materials and/or necessary calculations. 5 pts This criterion is linked to a Learning OutcomeProfessionalism - Writing mechanics and formatting quality of written submittal 5 to >4.0 pts Impeccable - few to zero errors Demonstrates clarity, content flow and correctness; formatting is appropriate and writing is free of grammar and spelling errors. 4 to >2.0 pts Presentable Occasional grammar or spelling errors, however document offers a clear presentation of ideas; may lack organization or proper formatting. 2 to >0 pts Poorly presented - numerous errors Writing style is unfocused, difficult to follow, rambling, or contains serious/numerous errors; poorly organized or does not follow specified guidelines. 5 pts Total Points: 20 PreviousNext

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There are several factors due to which Amazon has selected this city, which is following: 1. Amazon can cater to the more skilled workers in this city. As the project requirement is based on significant employment requirements. Therefore, it is a critical factor. 2. One of the significant factors is the cost, which is lesser in this city than in others. 3. As the city is full of resources, therefore, the city has more infrastructural advantages.